U.S. economy expanded 3.3% in Q2, with growth even stronger than initially thought

The U.S. economy grew at a pace that was faster than expected in the second quarter as consumers and businesses held up against tariff volatility.

Gross domestic product rose at a 3.3% annualized pace in the April-through-June period, the Commerce Department reported Thursday in its second estimate for the most encompassing measure of economic activity. The reading was better than an initial 3.0% estimate as well as the 3.1% Dow Jones consensus forecast.

Consumer spending, which rose by 1.6% compared with an initial 1.4% estimate, helped push the number higher.

Importantly, a measure called final sales to private domestic purchasers jumped 1.9%, up from the previous figure of 1.2%. 

Federal Reserve officials watch that metric closely as an indication of demand and sales that focuses on activity within U.S. borders, an especially important measure considering the uncertain impact of President Donald Trump’s tariffs.